Abbott Holding Steady For Long-Term Investments
Abbott Laboratories (ABT) is currently one of the most appealing investments in the Big Pharma sector. Abbott continues to increase applications for its industry leading rheumatoid arthritis drug, Humira; its patent doesn’t expire until December 2016. Abbott Laboratories recently put Depakote misbranding litigation to rest by settling with all concerned parties. Abbott has also unveiled a promising product for CAD, and remains focused on developing treatments for hepatitis C.
Pfizer (PFE), Johnson & Johnson (JNJ), Novartis (NVS), and Gilead Sciences (GILD) are the firms most comparable to Abbott Laboratories. Pfizer and Abbott are around 22 times earnings, while Johnson & Johnson and Gilead are closer to 21 times earnings. Novartis’ $3.53 EPS is the highest, while Gilead’s EPS is around $3.30 and Abbott’s EPS is around $3.09. Abbott’s EPS growth has been around 1.5% in 2012, and is projected to increase about 6.3% for 2013. Abbott’s ROE is 19.2%; its operating margin is around 16.1%, and its profit margin is around 12.3%. Abbott’s current ratio is about 1.53, and its debt-equity ratio is around 0.74. All of the major pharmaceutical companies’ price-to-sales ratios are around 2.9.
Abbott has the lowest beta score among these firms; its average volume is around 5.6 million, and its relative volume is around 1.1. Abbott’s 29.2% year-to-date stock increase and 5.5% increase in the past month is the highest among the four major pharmaceutical firms. Gilead is a stronger growth stock in the sector; its stock increase has been 68% year to date and 15.2% in the past month. But Abbott’s 2.5 short ratio and 0.9% float ratio are both lower than Gilead’s corresponding ratios. To continue reading, click here.